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DECISION No. 217/2003/QD-TTg OF OCTOBER 27, 2003 ON THE MANAGEMENT OF POST AND TELECOMMUNICATION SERVICE CHARGES

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the May 25, 2002 Ordinance on Post and Telecommunications;

Pursuant to the April 26, 2002 Ordinance on Prices;

At the proposal of the Minister of Post and Telematics,

DECIDES:

Article 1.- Scope and subjects of application

1. This Decision applies to all domestic as well as foreign organizations and individuals in Vietnam that are engaged in activities of providing and using post services, mail-delivering and -dispatching services and/or telecommunication services in Vietnam (hereinafter called post and telecommunication enterprises and users).

2. This Decision prescribes the management of charges for post services, mail-delivering and -dispatching services and telecommunication services, including:

- Charges for domestic and international post, mail-delivering and -dispatching and telecommunication services, applicable to users (hereinafter called service charges applicable to users);

- Charges for domestic and international post, mail-delivering and -dispatching and telecommunication services, applicable to enterprises purchasing post and telecommunication services from other enterprises in order to carry out activities of providing services to users (hereinafter called service charges applicable to post and telecommunication enterprises).

Article 2.- Principles for charge management

1. The State respects the post and telecommunication enterprises' rights to self-determine charges and to compete in charges under the provisions of law.

2. The State applies necessary measures to stabilize charges and protect the legitimate rights and interests of service users, post and telecommunication enterprises, as well as the State's interests.

3. The equality in the provision and use of post and telecommunication services must be ensured; conditions shall be created for post and telecommunication enterprises to develop service networks in rural, deep-lying, border and island areas.

Article 3.- Grounds for prescribing charges

1. Grounds for prescribing service charges payable by users:

a/ Post and telecommunication service charges shall be set in compliance with socio-economic development policies, post and telecommunication development objectives in each period and international treaties which Vietnam has signed or acceded to.

b/ Post and telecommunication service charges shall be determined on the basis of the service production costs, the supply-demand relations on the market and the rational correlation with charge rates in the region and the world.

c/ Charges for domestic post and telecommunication services shall be prescribed in Vietnam dong (VND). Charges for international post, mail-delivering and -dispatching, and telecommunication services shall be prescribed in convertible foreign currencies and may be collected in foreign currencies or Vietnam dong at the average exchange rate on the inter-bank foreign exchange market announced by Vietnam State Bank.

2. Grounds for prescribing service charges applicable to post and telecommunication enterprises:

a/ Charges for connection among telecommunication enterprises shall be determined on the basis of:

- Connection costs;

- Non-discrimination between services, between telecommunication enterprises, between members of telecommunication enterprises and other telecommunication enterprises;

- Rational separation according to network-constituting parts or service stages;

- Rational correlation with the connection charges of countries in the region and the world;

- In cases where the connection charges include contributions for the provision of public-utility telecommunication services, these contribution levels shall be prescribed in a reasonable manner so as to ensure equality.

b/ International negotiation charges: Shall be formulated on the basis of negotiation and agreement between enterprises licensed to provide international post and telecommunication services and foreign exploiters, ensuring the national sovereignty and interests as well as the interests of users and enterprises.

c/ Charges for channel lease, common use of infrastructure, service agency and re-sale shall be formulated in compatibility with the policies of promoting healthy competition, opening markets and promoting internal strengths in each period.

Article 4.- Tasks and competence for charge management

1. The Prime Minister:

a/ To promulgate policies and mechanisms for the management of post and telecommunication service charges.

b/ To decide on service charges for:

- Domestic non-registered mails of up to 20 grams;

- Telephone subscription and local telephone calls at the subscribers' addresses.

2. The Minister of Post and Telematics:

a/ After obtaining written opinions of the Ministry of Finance:

- To submit to the Prime Minister:

+ For promulgation decisions on the management of post and telecommunication service charges;

+ Charge options for the services prescribed at Point b, Clause 1 of Article 4.

- To decide on:

+ Charges for public post services and exclusive post services;

+ Charges for public telecommunication services.

b/ To decide on charges for mail-delivering and -dispatching services.

c/ To decide on service charges applicable to users of enterprises holding dominant market shares:

- Domestic and international long-distance telephone services (PSTN, IP);

- Mobile phone networks' services with different payment modes (prepayment, subscription);

- Services of leasing international, inter-provincial, intra-provincial and local telecommunication channels;

- Internet connection and access services;

- Inmarsat services.

d/ To provide for:

- Free-of-charge post and telecommunication services;

- Domestic and international post and telecommunications services for the management and administration of post and telecommunication network.

e/ To decide on charges for connection among telecommunication enterprises.

f/ To prescribe the mechanism for management of charges for channel lease, common use of infrastructure and service agency and re-sale among telecommunication enterprises.

g/ To prescribe the mechanism for management of international negotiation charges between Vietnamese post and telecommunication enterprises and foreign post and telecommunication enterprises.

h/ Annually, based on the market situation and the State's management requirements, to announce lists of:

- Telecommunication services and telecommunication enterprises holding dominant market shares stated at Point c, Clause 2 of Article 4;

- Other post and telecommunication services (other than those stated at Point c, Clause 2 of Article 4) with charges being prescribed by the Ministry of Post and Telematics.

i/ To guide the application of exchange rates between convertible foreign currencies and Vietnam dong for the collection of charges from service users according to regulations of Vietnam State Bank.

j/ To guide methods of formulating options on post and telecommunication service charges.

k/ To provide for measures to fight charge dumping and control monopolistic charges in the field of post and telecommunications according to law provisions.

l/ To guide post and telecommunication enterprises to implement the State's regulations and decisions on post and telecommunication service charges.

m/ To guide post and telecommunication enterprises to make post and telecommunications specialized statistical reports in service of the supervision and management of service charges.

n/ To assume the prime responsibility and coordinate with the Ministry of Finance in guiding the reporting, cost accounting and determination of prices for the provision of:

- Public post and telecommunication services;

- Telecommunication services accounting for dominant market shares;

- Other post and telecommunication services.

o/ To organize and direct the examination, inspection and handling according to its competence of acts of violating the provisions of this Decision and regulations on post and telecommunication charges of competent State management agencies.

Article 5.- Tasks and powers of post and telecommunication enterprises

1. Post and telecommunication enterprises shall specify charges for services:

a/ With their standard charges or charge brackets prescribed by the State;

b/ Being outside the lists prescribed by the State in strict accordance with regulations on the management of charges, issued by competent State management agencies.

2. Post and telecommunication enterprises have the tasks:

a/ To formulate and submit to the Ministry of Post and Telematics charge options for services with their charges prescribed by the State.

b/ To account the costs and determine the prices of post and telecommunication services according to regulations of the Ministry of Post and Telematics and the Ministry of Finance.

c/ To comply with the reporting regime as prescribed and notify the Ministry of Post and Telematics and the Ministry of Finance of information related to post and telecommunication service charges.

d/ To publicly post up service charges applicable to users at places of transaction or service provision according to law provisions. Information posted up must be clear, accurate and adequate and in forms convenient for service users to access it.

e/ To be subject to the charge inspection and control by competent State agencies according to law provisions.

Article 6.- Rights and obligations of users

1. Users shall have the rights:

a/ To be fully and accurately informed of, and to request post and telecommunication enterprises to provide guidance and explanation on, charges for services provided by the enterprises.

b/ To lodge complains against post and telecommunication enterprises about the latter's errors related to charges and the provision of post and telecommunication services and to exercise other rights according to law provisions.

2. When using post and telecommunication services, users shall have to pay charges according to terms agreed upon in the contracts on the provision and use of services between users and enterprises and fulfill other obligations according to law provisions.

Article 7.- Exemption and reduction of post and telecommunication charges in special cases

1. The Prime Minister and the Minister of Post and Telematics shall, according to their competence, have the right to exempt and/or reduce post and telecommunication service charges in the following special cases:

a/ In service of national defense, security and other special political tasks.

b/ Natural disasters and enemy sabotage.

2. In case of necessity, if the exemption and/or reduction of post and telecommunication service charges by the Prime Minister or the Minister of Post and Telematics exerts great impacts on production and business activities of enterprises, the Ministry of Post and Telematics and the Ministry of Finance shall jointly consider and propose solutions to provide financial support for the enterprises.

Article 8.- Implementation provisions

1. This Decision takes effect 15 days after its publication in the Official Gazette and replaces the Prime Minister's Decision No. 99/1998/QD-TTg of May 26, 1998 on management of post and telecommunication charges.

2. The Minister of Post and Telematics and the Minister of Finance shall have to guide the implementation of this Decision.

3. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the provincial/municipal People's Committees shall have to implement this Decision.

Prime Minister
PHAN VAN KHAI